3rd Home Loan Criteria

Hi Everyone,

We are receiving tremendous request to explain in details for the new ruling “3^rd House Financing Facility With Maximum Loan to Value 70%” .We would like to clear the air with the chaos in the housing loan sector. Here, we provide simple example for this new ruling.

These simple conditions apply:

1) Banks will refer to CCRIS report.

What is CCRIS?

CCRIS is a Bank Negara Malaysia (BNM) sponsored system that supports the functions of the Credit Bureau (CB)

What is CREDIT BUREAU (CB)?

Credit Bureau is a unit established by BNM to collect credit information on borrowers from financial institutions and supplies the information back to financial institutions.

The Credit Bureau does not collect any information on deposits or the investment portfolio of any individual or corporation.

2) Bank will only refer to existing home loan or payslip (for government staff). Bank will not base on Sales and Purchase agreement or ownership of the property.

Example 1 :

Mr A has 3 existing home loan with few banks.

Ms B has only 1 existing home loan with bank.

Now, Mr A would like to purchase a new house with Ms B. Sales and Purchase agreement under Mr. A and Ms B.

Scenario 1:

With an assumption, the new home loan under Mr. A name. The home loan entitlement will be up to margin 70% only. Because, this is Mr A’s 4^th home loan.

Scenario 2:

With an assumption, new home loan under Ms B name only. The home loan entitlement will be up to margin 90%. Because, this is Ms B’s 2^nd home loan.

Scenario 3 :

With an assumption, new home loan under Mr A and Ms B name. The home loan entitlement will be up to margin 70%. Because, this is Mr A’s 4^th home loan.

Example 2:

Mr A has 2 existing home loans with bank. Recently, he sold one of the houses, Sales and Purchase agreement signed. CCRIS still appear this home loan.

Today, Mr A purchased a new house.

If he applied a home loan for the new house, what is the entitlement?

Answer: Up to 70%. Because, it is consider 3^rd home loan. His existing home loan still appears in CCRIS report.

If the home loan no longer appears in CCRIS, then his entitlement for home loan will be 90%.

Example 3:

Mr. A don’t have any property under his name. Basically, he didn’t own any house. But, he has 2 home loans co-joining with his sister and brother. He joined as a co-borrower because both of his brother and sister do not have sufficient income at that moment.

Now, he interested to purchase first house under his name and apply a home loan. What is his entitlement?

Answer : Up to 70%. Since, the new home loan will be 3^rd home loan.

Example 4:

Mr A has 10 houses around Malaysia. All houses are fully paid or buying with cash. Now, he is purchasing a new house and would like to apply for a home loan. What is his entitlement?

Answer: Up to 90%.

*Checked with Ms Norhana from Bank Negara Malaysia ( 1-300-88-5465 )

Thank you.

Credit To: http://malaysiahousingloan.net